Dennis Norman
Today the National Association of REALTORS(R) released its existing home sales report for June showing an increase in sales for the 3rd month in a row and home prices declining less sharply.
Existing home sales,including single-family,town-homes,condominiums and co-ops increased 3.6% in June to a seasonally adjusted annual rate of 4.89 million units. This rate is almost identical to last years sales at the same time which is a first in a quite a while. May’s rate was down 3.6% from a year ago and June is down just 0.2% from a year ago.
Also for the first time in a while,all four regions of the U.S. had an increase in sales for the month with the West leading the pack with a 6.4% increase followed by the South at 4.9%,Northeast at 2.5% and the Midwest a 0.9%.
Median home prices in the U.S. rose 4% from $174,700 for May to $181,800 for June which is down 15.4% from a year before. This narrows the year-over-year gap from Mays drop of 16.8%. This month all of the four regions in the U.S. saw an increase in median home prices. The Midwest saw a 6.7% increase over May followed by the West at 3.7%,South at 3.6% and the Northeast at 2.1%.
I think the numbers show there is some confidence on the part of home buyers and they are coming off the sidelines. The first time home buyer credit is definitely playing a part in this.
Lawrence Yun,NAR Chief Economist
Lawrence Yun,the chief economist for the National Association of REALTORS(R) is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,”he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions,many REALTORS(R) are reporting lost sales as a result of new appraisal standard that went into effect May 1 of this year.”
A June survey of NAR members shows 37% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct (HVCC),with seven out of ten reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees,while 85% report a perceived reduction in appraisal quality.
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